Cardine-West Bank transaction needs Italian OK

The transaction through which Italian banking group Cardine Gruppo is to take over a 75% stake in Arad-based commercial bank West Bank could be concluded by the end of the month if Italian authorities approve the sale-purchase contract.

While the National Bank of Romania has already okayed the transaction in June, Italian authorities seem to be postponing their verdict, without volunteering any particular reason. This delay is blocking the 11.7 million-dollar transfer, an amount that has been paid by the Italians for the 75% stake bought in this bank.

“According to the Italian banking law, the authorities from this country have to authorise any transaction in this field within 60 days since the date of receiving the last official document. As the last document regarding this transaction was submitted on June 27, I am positive that the situation will be clarified by the end of the month,” West Bank chairman Cornel Pirtea told Ziarul Financiar.

He added that he had information according to which the Italian authorities have requested the National Bank to send them data regarding West Bank and have already received them.

“We have no reason for concern, as the transaction will be concluded, and when I say this I mean that we have already signed financing programmes for the next five years with them,” the Romanian bank official claims.

Cardine Gruppo at the end of May bought 75% in the Romanian bank from several Romanian and foreign legal persons and paid 11.7 million dollars. Furthermore, the Italians pledged to increase the bank’s share capital from 186 billion lei to 500 billion lei.

One provision in the contract stipulated that the bank should maintain the executive management, the name and the head office.